After a two-year investigation by the CDI Criminal Investigations Branch, Robert Joseph Cote, 57, owner of Grand Valley Framing, was arrested on two felony counts of insurance fraud.
In 1996, SCIF conducted a routine workers’ comp audit of Loomis, Calif.-based Grand Valley Framing. SCIF determined that Cote was unable to provide payroll records classifying employees in a higher job classification ($20/hour) that justified paying a lower workers’ comp premium rate. SCIF also determined that Cote owed $32,808 in unpaid workers’ comp premiums. Cote requested SCIF for a revised audit and provided payroll records reflecting employees had earned $20 or more per hour, and as a result, SCIF eliminated his $32,808 premium debt.
In April 1998, a former Grand Valley Framing employee contacted SCIF to say that Cote had fraudulently altered the payroll records. This led to investigators serving a search warrant on Grand Valley Framing and Cote’s residence in September 1999. The search turned up evidence that employees were paid piecework wages. In addition, statements were obtained from employees who participated and/or witnessed Cote falsifying payroll records.
As a result of this fraudulent activity, SCIF incurred a loss of $82,180 in unpaid workers’ comp premiums for 1996 through 1998.
Topics Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
US Roof Maintenance Lags: Hanover 
Wall Street’s Top Regulator Faces Worsening Battle in Wake of Supreme Court Ruling 
Law Firms Smell Opportunity as Supreme Court Guts Agency Powers 
Three Charged With Helping Agents Cheat on Florida Insurance License Exams From This Issue
